This afternoon, President Obama will visit Scranton High School in Pennsylvania where he will continue to urge Congress to extend and expand the payroll tax cut that has provided a tax break to approximately 160 million middle-class Americans across the country this year.
Last December, the President signed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 into law – and a cornerstone of that package was support for middle-class families in the form of the payroll tax cut.
Today, Treasury’s Office of Tax Policy published a state-by-state look at the benefits this tax cut is providing this year and the additional benefits it will provide next year if Congress extends and expands the payroll tax cut as the President proposed.
Overall, this 2 percentage point payroll tax cut for 2011 provides a tax cut of about $1,000 for the typical American working family and a total of $109 billion in tax relief to support economic growth and job creation in 2011. Expanding this to a 3.1 percentage point tax cut for 2012, as President Obama has proposed, would increase that tax cut to about $1550 per typical American family and the total amount of tax relief to $179 billion in 2012.
If Congress acts before the end of the year to pass the expanded payroll tax cut the President proposed, American families will have even more money in their pockets and small businesses will have new incentives to grow and hire, creating jobs and strengthening the economy. In Pennsylvania, for example, 6.8 million people will benefit from $7.8 billion if the President’s proposal to extend and expand the payroll tax cut is passed. And in Wisconsin, 3.2 million Americans will receive a total of $2.1 billion next year under the President’s plan.
Check out the benefit in your state here.
Sandra Salstrom is Spokesperson for Tax, Budget and Economic Policy.